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ERISA Fidelity Bond

What is ERISA?

In 1974, the Employee Retirement Income Security Act (ERISA) was enacted to regulate most types of employee benefit plans. This Act requires that a fidelity bond be in place to cover the fiduciary and those persons who handle funds or other property of such a plan.

According to the Act, the amount of coverage necessary for each plan is no less than 10 percent of the amount of plan funds handled. There is a $500,000 maximum bond amount and a $1,000 minimum. The amount of the minimum required bond is fixed at the beginning of each fiscal year of the plan. Higher limits can be purchased.

Under ERISA, a "fiduciary" is defined as a person who "(i) exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets, (ii) renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority or responsibility to do so, or (iii) has any discretionary authority or discretionary responsibility in the administration of such plan…" (ERISA, Sec. 412, U.S. Code 1002(21)(A))

ERISA bonds are intended to protect retirement plans from fraud and dishonesty committed by individuals who are associated with them. The term "fraud or dishonesty" includes such events as larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication or other fraudulent or dishonest acts.

ERISA Bonds which respond to claims involving the insured’s own employee benefit plans. This is the type of bond we provide for your company.

Advisors ERISA Bonds that cover fiduciaries for claims involving client employee benefit plans. These bonds are required for Investment Advisors, Brokers, and Fiduciaries who provide plan or investment services for their clients. Higher limits may be required.

Contact us today for help with your ERISA Bond needs. A member of the Bond Department will be happy to assist you.

Our Customers Say

Jacquelynne Maloney at the Tonry agency has helped us immeasurably navigating the bonding process. She took the time to get to know us and develop a complete picture of our company, our goals and objectives, our capabilities, our needs and the history of our company. Her knowledge of the market allowed her early on to recognize what program would work for our company. Other bonding agencies simply asked for a copy of our financial statement, balance sheet and work on hand. They appeared to have no interested in whether we were making cupcakes or nuclear missiles. Jacquelynne took the time to get to know us personally. To her we were more than just our financial statement.

The Massachusetts Commissioner of Insurance has approved a Stipulation for the general revision of workers' compensation rates, effective 12:01 A.M., July 1, 2018 that generates an overall average decrease of 12.9% for Massachusetts workers’ compensation rates.

Download the Tonry Topic for changes to manual rates, averages by industry, experience rating, deductible credits, and commonly used classifications. Changes to workers' compensation rates will be applied to new and renewal policies with effective dates on or after July 1st.

Effective October 21, 2017, customers will be eligible to renew their licenses or ID cards online for two consecutive renewal periods. This will result in approximately 30,000 additional renewal transactions eligible to be processed online each month. Fewer in-person customers will make it easier for the RMV team to attend ATLAS training and prepare for the March 26, 2018 ATLAS rollout. This will also allow customers to keep their current photo images for five additional years.